If you’ve been in the industry for a while and are starting to think about taking the next step into full-time entrepreneurship, here are a few points to consider for a successful start.
You know how to get customers
The most important aspect to consider when starting a business is knowing what will attract your target customers. While many small businesses start out with a customer base created through referrals, making the leap from working on the side to becoming an entrepreneur full-time usually happens when you know how to acquire customers.
You can handle the financial risk
Committing to full-time entrepreneurship requires your undivided attention. Getting stuck worrying about mortgage payments, rent, or other ongoing costs means you will not give your business the attention it deserves. Work out what it costs to live your current lifestyle based on your savings, income, and liabilities, then figure out how long you can continue living that lifestyle as an entrepreneur. If it is less than six months, it may not be a good idea to become a full-time entrepreneur yet.
You know when to stop trying
Many people assume that it is obvious when to draw the line with a business; when it run out of money. However, many more situations exist in reality that signal when entrepreneurs should stop trying.
For example, if your business continues to make a profit but still needs funding, and you don’t get the second round of funding, are you willing to go into personal debt or sell your house to keep the business going? Depending on what stage you are at with your business idea, it is always a good idea to determine when to draw the line ahead of time.